Honda’s Recovery Expected in About Five Years image

The natural disasters which Japan had to face last year had a negative influence on Honda Motor’s production. The production of Japan’s third biggest car maker fell with 20% in 2011.

But Honda Motor President Takanobu Ito assures us that in less than five years the company will get on top again. Until the end of March 2013, Honda will get to levels achieved in 2008, when Lehman Brothers Holdings Inc. filled for bankruptcy.

“It will be the year of the complete rebound. Sales in North America will lead the recovery.
We’ll introduce a fully revamped Accord in the fall, and that will be a big plus to our sales” declared Ito.

Honda’s targets might get achieved, as the U.S. economy is getting fast on its feet again. Since the company remodeled their best-selling cars (the Accord sedan, the Civic and The CR-V sport-utility vehicle), strong sales are expected in North America. This will help Honda regain market share, increasing the U.S. sales 24% to 1.43 million units in 2012.

Because Honda’s new recover strategy includes producing cars where they are sold, they are planning to focus on the production of minicars.
These 3.4-meter (11 feet) vehicles will account for 40% Japan’s auto demand.

“Honda plans to boost the portion of vehicles sold in the same region they’re built to as high as 80 percent”, Ito said.